Energy firms making money from poor consumers

A recent report has claimed that the UK’s big energy giants are making money from the poor, and this is as a result of extra charges that are imposed on prepayment meters, which are often used by lower income households. Energy firms are said to be making around half a billion pounds a year from these additional charges according to the report.

Around one thousand prepayment meters are day are being installed in properties where the homeowner has fallen into arrears with their energy bills, according to the figures on the report. Many other people prefer to have prepayment meters so that they can budget more effectively, particularly those on low incomes that sometimes find it difficult to make ends meet.

An official from a campaign group said: “Companies could be making up to £550m a year from extra charges they charge on prepayment meters. The energy companies are making the most money out of those on prepayment meters, and often those are the people on the very lowest incomes.”

Another official said that the fact that people were being forced into having these meters was unfair. He said: “These people have built up debt but they are not being offered a range of payment methods and they’re not being offered affordable repayment rates. They’re being pushed onto prepayment meters.”